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Setembro 2011
Uncertain scenario
Come the second half of 2011, the paint industry, which expected positive results due to the exceptional growth
experienced in 2010, was surprised by rather unsatisfactory forecasts, as its growth has fallen considerably
this year.
The Brazilian Association of Paint Manufacturers, known for short as Abrafati, exposed the current situation
in the paint market during the 6th Abrafati Paint Industry Forum, and the industry’s representatives were
somewhat shocked, as they all knew that Brazil’s economic growth had slowed down, but had no idea what the
resulting forecasts would be.
According to Abrafati, the paint industry will grow 1.3 percent for 2011. Better results are expected for next
year, when growth is expected to reach 4 percent. That suggests that the growth experienced in 2010 will really
go to the history books, as it will be hard for the market to achieve such a positive performance again. Howe-
ver, the industry is still optimistic by virtue of the excellent results of the growth in certain industries, such
as automotive and building and construction. Not to mention the events that Brazil will host in the next few
years, which will sustain strong growth in the domestic market in the mid and long term, as they demand a lot
of manufacturing and service activities.
The main concern today is the world uncertainty about the future. There is a 35-percent probability of a world
recession occurring, but we need to keep in mind that it’s only 35 percent. The main scenario involves only an
economic slowdown. Unfortunately, we will have to put up with high interest rates, as the government will use
them to keep the inflation down, at the expense of consumption, which will decrease.
Despite such uncertainties that make the industry concerned and fearful, Brazil is still a country with lots of
opportunities and challenges ahead of it. The important thing is that this scenario is still considered to be so-
mewhat beneficial to Brazil because the structural factors that have been stimulating sales will remain in exis-
tence for many years, including the great interest of foreign investors in the country. We must continue to be
optimistic and to work for making things turn out better than expected, and better results will come in 2012.
See in this issue Abrafati’s growth forecasts for the paint industry in 2011 and expectations for 2012.
Also in this issue, we are sorry to announce the death of Guilherme de Souza Pires, chief executive officer of
Sintirj. The market certainly loses a great representative who was committed to the causes of the paint indus-
try in Rio de Janeiro.
Lucélia Monfardini
Paint Market – Rio de Janeiro - Positive
As in the rest of Brazil, the paint industry in Rio de
Janeiro has great growth projections for the next
few years, especially in the decorative and mari-
time paint segments.
The first chapter in the history of Rio de Janeiro’s
paint industry began to be written in 1904, in the
city of Rio de Janeiro, which was then the Federal
District, when Carlos Kuenerz founded São Cris-
tóvão. The following 100 years saw Brazil become
one of the world’s five largest markets for paints.
Today, paints are manufactured in Brazil for the
most varied of applications, with cutting-edge
technology and world-class technical competence.
According the information provided by the Brazil-
ian Association of Paint Manufacturers (known for
short as Abrafati), there are hundreds of large, me-
dium-sized and small paint manufacturers spread
all over Brazil. In addition, major world suppliers
of raw material for paints have operations here,
whether directly or through their agents, together